Werder Bremen are on the verge of completing the signing of Serge Gnabry from Arsenal, according to the Bundesliga club's director of sport Frank Baumann.

The 21-year-old German midfielder, who scored six goals for his country as they clinched a silver medal at the Olympic Games, is out of contract next summer and set to return to Germany.

Baumann said he expects Gnabry to arrive in northern Germany on Wednesday and dismissed reports that Bayern Munich would participate in the transfer by buying the player and loaning him to Bremen.

"We've got an agreement with the player and we're confident it will go through," he said at a press conference on Tuesday. "We have reached a fundamental agreement with Arsenal, but nothing is signed yet. Bayern have no influence on the potential transfer.

"It could all go through by lunchtime tomorrow. We've gathered information on him from Per Mertesacker, who was full of praise for him."

Bremen are putting all their efforts into signing the Germany Under-21 international with Baumann adding: "If it doesn't work out with Serge Gnabry, which I don't expect to happen, then we are not going to be doing anything else."

Gnabry joined the Gunners from Stuttgart's youth academy in 2011 and has gone on to play 10 Premier League games for them, as well as making a solitary appearance during a loan spell at West Bromwich Albion last season.